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HEALTHCARE REAL ESTATE, CONSTRUCTION, DESIGN & FACILITY PLANNING

Medical Office Space Market Trends: Why Lease When You Can Buy?

Three Factors to Consider

As you search for the best commercial loan fees, inspections and property interest in mind. NAI/Merin Hunter
property for your practice you may ask upgrades. Each practice should evaluate Codman’s medical space expert, Lesley
yourself whether you would be better off their upfront investment abilities to Sheinberg places investors and tenants on
owning or leasing. Lesley Sheinberg, decide which option falls in line with an even playing field with commercial
Director at NAI/Merin Hunter Codman, their goals. real estate professionals, landlords and
who specializes in medical site facilita- 2. The Space: What may work for you owners, utilizing her medical site selec-
tion, has experienced a shifting trend now might not in a few years depending tion expertise and superior negotiation
towards purchasing medical office build- upon your practice’s growth potential. skills.
ings versus leasing space. She notes, Newer practices may be better suited for
“More and more established practices and leasing until they get a handle on their If you need a broker who specializes in
collective groups of private physicians are long-term square footage and location your field, call Lesley today at
realizing the benefit of owning a building requirements. Established practices know (561) 471-8000 or (561) 254-7810.
far outweigh leasing space from a landlord, their client numbers and benefit from
as the potential for long term cost savings staying several years at one location. NAI/Merin Hunter Codman, Inc. is Palm
and financial gain is great.” Additionally, if they purchase a building Beach County’s leading commercial real
As mortgage and rent payments are often larger than their immediate need estate services firm, with over three decades
very similar, the pros and cons of purchas- requires, leasing out the extra space can of experience advising on strategic acquisi-
ing versus leasing must be weighed. There produce income, until they need the tions, dispositions, leasing and comprehen-
are primary benefits to both, the primary Lesley Sheinberg space for their own. sive property management. We advise on all
benefit of purchasing is your ability to own 1. The Investment: When leasing, the 3. The Budget: When you purchase a commercial property sectors, from office
an asset of increased value at the end of the upfront costs are typically the first building, fixed and variable cost factors and industrial to retail, multifamily and
mortgage term, while reaping the tax ben- month’s rent, security deposit and tenant can be controlled to some extent. When land. Our client base includes some of the
efits over the duration of the loan. improvements specific to the medical leasing, you are subject to the market cli- most prestigious institutional and private
However, some medical practices desire industry. Medical space upgrades often mate changes and annual cost increases investors in the world. NAI/Merin Hunter
the ability to relocate, downsize or expand include additional electrical, plumbing, imposed by landlords. Codman is headquartered in West Palm
at the end of a relatively short lease term. shielding and ADA compliance improve- If your practice is ready to move for- Beach with regional offices throughout Palm
To know if purchasing is right for your ments. At times, these costly upgrades ward with leasing or investing in com- Beach County. Where can we help you next?
practice, evaluate your long-term goals and can be covered in a well negotiated lease. mercial property, the very first step is to Call (561) 471-8000.
take into consideration the three factors If purchasing, upfront costs can be higher ensure you have a seasoned commercial
below. due to down payments, appraisal costs, real estate professional with your best

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